Zoom Communications (NASDAQ:ZM) Rating Lowered to Buy at Wall Street Zen

Zoom Communications (NASDAQ:ZM - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a report released on Monday.

Several other research analysts have also recently weighed in on the stock. Benchmark restated a "buy" rating and set a $97.00 price target on shares of Zoom Communications in a report on Tuesday, May 20th. Wells Fargo & Company boosted their price target on shares of Zoom Communications from $75.00 to $80.00 and gave the stock an "equal weight" rating in a report on Thursday, May 22nd. Scotiabank boosted their price target on shares of Zoom Communications from $75.00 to $85.00 and gave the stock a "sector perform" rating in a report on Friday, May 16th. Morgan Stanley boosted their target price on shares of Zoom Communications from $79.00 to $85.00 and gave the company an "equal weight" rating in a research note on Thursday, May 22nd. Finally, Cantor Fitzgerald reiterated a "neutral" rating and issued a $87.00 target price on shares of Zoom Communications in a research note on Thursday, May 22nd. One investment analyst has rated the stock with a sell rating, fifteen have assigned a hold rating, ten have assigned a buy rating and one has issued a strong buy rating to the company. According to MarketBeat, the company has a consensus rating of "Hold" and an average price target of $87.00.

Zoom Communications Price Performance

Shares of NASDAQ ZM traded up $0.34 during mid-day trading on Monday, reaching $76.96. 3,430,587 shares of the company's stock traded hands, compared to its average volume of 2,892,721. Zoom Communications has a 1-year low of $55.06 and a 1-year high of $92.80. The stock has a market cap of $23.28 billion, a P/E ratio of 23.11, a PEG ratio of 12.72 and a beta of 0.71. The business has a 50-day simple moving average of $78.68 and a 200 day simple moving average of $79.10.

Zoom Communications (NASDAQ:ZM - Get Free Report) last released its quarterly earnings results on Wednesday, May 21st. The company reported $1.43 earnings per share for the quarter, topping the consensus estimate of $1.30 by $0.13. Zoom Communications had a net margin of 22.31% and a return on equity of 11.08%. The business had revenue of $1.17 billion for the quarter, compared to analysts' expectations of $1.17 billion. During the same period in the previous year, the company earned $1.35 earnings per share. The firm's revenue for the quarter was up 2.9% compared to the same quarter last year. Equities research analysts anticipate that Zoom Communications will post 2.93 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, CEO Eric S. Yuan sold 41,121 shares of the business's stock in a transaction on Monday, April 14th. The shares were sold at an average price of $72.18, for a total value of $2,968,113.78. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Janet Napolitano sold 2,617 shares of the business's stock in a transaction on Friday, June 13th. The stock was sold at an average price of $76.78, for a total transaction of $200,933.26. Following the completion of the transaction, the director now directly owns 4,728 shares in the company, valued at $363,015.84. This trade represents a 35.63% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 94,196 shares of company stock worth $6,885,843 over the last three months. 11.51% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Zoom Communications

Several hedge funds have recently modified their holdings of ZM. Smartleaf Asset Management LLC grew its stake in shares of Zoom Communications by 6.7% during the 1st quarter. Smartleaf Asset Management LLC now owns 2,293 shares of the company's stock worth $172,000 after purchasing an additional 143 shares during the period. Wynn Capital LLC grew its stake in Zoom Communications by 1.6% in the 1st quarter. Wynn Capital LLC now owns 10,194 shares of the company's stock valued at $752,000 after acquiring an additional 160 shares during the period. Principal Securities Inc. grew its stake in Zoom Communications by 26.9% in the 4th quarter. Principal Securities Inc. now owns 783 shares of the company's stock valued at $64,000 after acquiring an additional 166 shares during the period. PNC Financial Services Group Inc. grew its stake in Zoom Communications by 4.3% in the 4th quarter. PNC Financial Services Group Inc. now owns 4,040 shares of the company's stock valued at $330,000 after acquiring an additional 168 shares during the period. Finally, New York State Teachers Retirement System grew its stake in Zoom Communications by 0.7% in the 1st quarter. New York State Teachers Retirement System now owns 24,298 shares of the company's stock valued at $1,792,000 after acquiring an additional 171 shares during the period. Hedge funds and other institutional investors own 66.54% of the company's stock.

Zoom Communications Company Profile

Zoom Video Communications, Inc provides unified communications platform in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. The company offers Zoom Meetings that offers HD video, voice, chat, and content sharing through mobile devices, desktops, laptops, telephones, and conference room systems; Zoom Phone, an enterprise cloud phone system; and Zoom Chat enables users to share messages, images, audio files, and content in desktop, laptop, tablet, and mobile devices.